But PSC Chairman Douglas Nazarian said that the potential savings from energy efficiency would far outweigh those costs, and that the agency would work to keep the add-ons as low as possible.
The EmPower Maryland Energy Efficiency Act, which was passed earlier in 2008, required electricity companies statewide to file plans to reduce demands and cost by September 1, 2008. Under the law, the PSC was required to take action on the utilities’ plans by December 31, 2008.
We have a lot of work to do in order to bring this to fruition, Nazarian said. But in a very real way, these order now allow our utilities to really start making real energy savings opportunities available.
The orders were issued to Baltimore Gas and Electric, Pepco, Delmarva Power and Light Company, Allegheny Power and the Southern Maryland Electric Cooperative, Inc. on December 31, 2008.
Nazarian said that the BGE programs approved by the PSC are similar to those rejected it earlier this year. The revised version, however, cut administrative costs by between 35% and 45%.
The EmPower Act was a brainchild of Governor Martin O’Malley’s administration and a primary piece of his agenda this year.
The programs approved today will not only help build a more sustainable energy future, but will also provide the opportunity for Maryland ratepayers to save on energy and ultimately lower their bills, O’Malley said.
Nazarian said that some programs will need further refinement and all will need ongoing review, but the PSC’s orders represented an important step in Maryland’s energy future.
The utilities now have what I think is a very clear directive form the commission about the kinds of directives they should be in administrating, Nazarian said. They should be in a position to get them going and roll them out.
